Development costs

If you buy a plot of land that you want to build on, you will sometimes have to pay development costs. Your property must be accessible by a road or path, for example. If this is not the case, it must be built. The street lighting may also have to be extended. If the property is still completely undeveloped, the connections to the water supply, sewerage, etc., are missing. Water, power, telephone, Internet and cable lines must also be laid.

The municipality takes care of the implementation of the construction measures. However, it may then charge the costs to you or the property owner(s) — not the total amount but up to 90% (§129 Baugesetzbuches (BauGB)).

The amount of development costs depends on various factors. The property's location plays a role and, of course, whether the property has already been partially developed or not at all. The more remote and undeveloped it is, the higher the development costs.

Therefore, when buying land, it makes sense to pay attention to the degree of development. Although the purchase price tends to be higher if certain requirements are already met, everything that does not have to be made accessible saves you time — and nerves.


Find useful real estate terms and abbreviations here.

Go to dictionary